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Former Member

RA Key with No result analysis

Hi Experts

Probably a very basic question.

If I have a customer T&M Project where I want to recognize revenue as its incurred and recognize cost as its incurred, Do I really need a result analysis in this case?

I would need to settle cost & revenue to profitability segment though.

So can I leave the RA key blank in the WBS or assign some RA key which does not make any calculation. For the later, what would be the configuration? Choose any method and just to not create any line ID assignment in OKG4 ?

I am looking for create a RA Key which is for " No result analysis", Just to make the business process even with other projects which might have a proper RA Key.

Thanks,

Krishna

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4 Answers

  • Best Answer
    Oct 24, 2015 at 05:41 PM

    Hi Krishna,

    When you tick some element as billing element in the project, then RA is mandatory . Without running result analysis , you cannot settle it. In above case use revenue based result analysis.

    Thanking you

    Vengaiah

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  • Oct 26, 2015 at 03:42 PM

    You do not have to have an RA Key on a WBS even if it is marked as a Billing Element.  Simply leave off the RA Key and when you post billing or costs thay will stay on the P&L.

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  • Oct 27, 2015 at 07:36 AM

    Hi Krishna,

    For dummy RA key you can use the RA Type Z.

    Regards,

    Paulo

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    Former Member
    Oct 27, 2015 at 02:48 PM

    Hi Vengaiah,Paulo,Ken,

    Thanks for all your feedback. I need to test based on the discussion above to determine what works for me.

    To just give you the scenario in more detail. The client has been on SAP from some time and is now looking for new RA treatment for some new projects.

    So we are trying to keep the settlement profile same and introduce new RA key and structure.

    The project would be something like below..

    Level 1 is just for summarization. RA Key will be assigned to Level 2s only and to be settled to PSG

    There would be child WBS with activities under each level 2.

    Settlement profile is the same and assigned to project profile.

    The WBS L2.1 has the RA Key based on revenue plan ( E, R)

    Cost is recognized as its posted. Deferred and unbilled are adjusted based on actual revenue and revenue plan.

    COS and calculated revenue is settled to PSG. This is working as per design.

    The question is on WBS L2.2

    Here we need to recognize revenue and cost as its incurred. However every month COS and Revenue is to be settled to PSG.

    The actual revenue (invoice doc) does not generate COPA document, So I don't think there will be duplication of revenue in COPA after settlement.

    When I tried to settle WITHOUT RA key on this WBS, it gave me Error that my Allocation structure does not contain the Revenue GL as the source.

    So, am wondering if I need some RA Key which would just put the values to the RA cost elements (source now)and then it can be settled to PSG from there.

    or Alternatively do I introduce a new GL for revenue and update the allocation structure in settlement config?

    Hope the question is clear.

    Below is my Allocation structure screen shot..

    Thanks,

    Krishna


    Q_structure.PNG (9.3 kB)
    q_As.PNG (15.2 kB)
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